There is a lot of buzz surrounding Fetch.AI (FET) as it approaches a potential breakout point that might lead to a 20-30% surge in its price. Currently, FET is trading at $1.33, showing a slight decrease of 1.19% over the last 24 hours.
Despite this minor dip, indicators from on-chain activity and technical analysis suggest a bullish momentum could be building up. The question remains – will FET live up to these expectations and initiate a significant price rally?
Is FET Set to Break past $1.38?
At the moment, FET’s price is moving within a descending channel, with $1.38 acting as a crucial resistance level that needs to be surpassed for a bullish breakout to occur.
If FET manages to exceed this barrier, it could potentially reach $1.60, marking the anticipated 20-30% price surge.
Looking at historical data, FET has previously broken out of similar patterns. However, sustained trading volume and positive momentum are imperative to validate this scenario and attract more investor attention.
Increasing Engagement in On-Chain Activity
There has been a noticeable uptick in network activity related to Fetch.AI, with a 47.36% increase in new addresses and a 12.46% rise in active addresses over the past week.
These encouraging figures indicate a growing interest in FET and a wider adoption within its ecosystem.
Furthermore, heightened on-chain activity often signals investor confidence, which typically precedes significant price movements.
Market Sentiment Reflected in Exchange Reserves
Exchange reserves of FET have marginally increased by 0.12% to 471.4M FET, suggesting that traders are handling coins on exchanges cautiously.
A decrease in reserves, however, could signify accumulation, putting upwards pressure on prices.
Therefore, closely monitoring this metric is crucial for detecting shifts in sentiment and potential bullish indicators.
FET’s Technical Indicators and Potential Momentum
Analysis of FET’s technical indicators presents a somewhat conflicting view. The moving average (MA) cross implies a probable uptrend, fueling hopes for a bullish scenario.
However, the Average Directional Index (ADX) stands at 15.76, indicating a weak trend strength that necessitates validation from price movements and trading volume. Traders are eagerly anticipating stronger signals.
The Impact of Liquidations on Price Momentum
Data on liquidations reveals that there have been $13K of short liquidations in comparison to $1.56K in long positions, showing a prevailing bearish sentiment in the short term.
If FET manages to surpass the $1.38 mark, significant short liquidations could be triggered, potentially sparking a rapid price surge. This scenario could intensify bullish sentiment and create substantial upward momentum.
With all the pieces in place, Fetch.AI is potentially gearing up for a 20-30% price increase if it breaks past the $1.38 resistance level.
The combination of rising network activity, positive technical signals, and potential liquidations indicates a strong bullish setup for FET. Hence, FET seems well-positioned to fulfill the expectations of a price rally in the near future.